E3-31. Journalizing and Posting Closing Entries

The adjusted trial balance as of December 31, 2015, for Brooks Consulting Company contains the following selected accounts.

a. Prepare entries to close these accounts in journal entry form.

b. Set up T-accounts for each of the ledger accounts, enter the balances above, and post the closing entries to them. After these entries are posted, what is the post-closing balance of the Retained Earnings account?

Adjusted Account Balances Debit Credit 80,300 .. . 20,800 5,600 Retained earnings 67,000